New research reveals that small UK private sector landlords are loosing £2.1 billion* a year through unexpected costs, real estate and lettings agency franchise Northwood has reported.
The study, which was undertaken by Northwood, reveals that 84 per cent of landlords receive less money than they thought from their monthly rental income due to unexpected costs, such as vacant properties, tenant arrears, unexpected maintenance charges and having to take time away from their core employment to deal with tenants and the property.
Northwood believes that its Guaranteed Rent scheme that ensures landlords receive rent even if their property is unoccupied helps to cut landlords’ costs. Nick Cooper, Managing Director of Northwood, said: “Landlords have recently been under fire with accusations that tenants are victims to greedy landlords, but this research highlights that landlords too face a number of difficulties.
“The amount of money being paid out for unexpected costs each year is staggering, and with tenant arrears and vacant properties a very real concern, landlords can be hit hard.
“Some people become landlords due to changes in personal circumstances, the need to relocate or because of the current housing market. The research shows that being a landlord can be like having a second job that is why we have a Guaranteed Rent Service to ensure our landlords get paid, no matter what.”
*Calculated by average cost a landlord spends a year [£1532] multiplied by 1.4million landlords in the UK [according to the National Landlord Association]
Published: 16 November 2012
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